Revolut has criticised Meta’s efforts to combat fraud, urging social media companies to share responsibility for victim reimbursement.
- Revolut believes financial institutions are unfairly tasked with refunding victims and seeks more substantial commitments from social media firms.
- The fintech described Meta’s recent measures as insufficient, calling them mere ‘baby steps’ instead of necessary ‘giant leaps’.
- A significant proportion of scams reported to Revolut originated from Meta platforms, highlighting a persistent issue.
- Meta’s spokesperson promotes collaboration, pointing to their ongoing Fraud Intelligence Reciprocal Exchange programme.
Revolut has openly challenged Meta’s current approach to addressing digital fraud, labelling the measures as inadequate and calling them ‘baby steps’ rather than the ‘giant leaps’ needed. This comes in the wake of Meta’s initiative to enhance cooperation with UK banks through the extension of their Fraud Intelligence Reciprocal Exchange (FIRE) programme. The aim of this programme is to facilitate the sharing of fraud-related intelligence between banks and Meta, intending to support fraud prevention on its platforms such as Facebook and Instagram.
Woody Malouf, head of financial crime at Revolut, has voiced concerns over the current responsibilities placed on financial institutions. According to Malouf, these entities are unfairly burdened with the cost of fraud because social media companies like Meta have not provided sufficient support or taken adequate preventative action. Malouf emphasised the ongoing severity of the issue, which remains unchanged compared to the previous year.
Revolut has called for social media companies to bear a share of the responsibility for reimbursing victims, akin to the commitments made by financial institutions. Malouf highlighted the lack of action from Meta as a significant problem, stressing that ‘their silence on this issue says it all.’ With 62% of reported scams linked to Meta platforms, the UK fintech giant sees a pressing need for change in how these cases are managed.
Meta’s response, as articulated by a company spokesperson, emphasised the need for a collaborative approach to combat fraud, which they described as a ‘multi-sector spanning issue.’ They encouraged further bank participation in the FIRE programme to enable better information sharing, which they believe is crucial for improving security measures across their platforms.
The initial phase of the FIRE programme, a six-month pilot, involved British banks like NatWest and Metro. These institutions shared confirmed scam instances with Meta, allowing the social media giant to identify patterns and sources of fraudulent activity, thus enhancing its protective measures. Despite these efforts, the high percentage of scams reported by Revolut underscores the persistent challenge posed by online fraud linked to social media.
Revolut’s firm stance marks a call to action for Meta to intensify its fraud prevention efforts and assume greater accountability.
